Microsoft Issues Statement on Oracle Admission

Redmond, Wash. -- June 28, 2000 - On Wednesday, Microsoft Corp. responded to Oracle's admission that the Redwood City, Calif.-based software company had funded and overseen covert operations against several public policy groups and trade associations. The company issued the following statement:

"The only thing more disturbing than Oracle's behavior is their ongoing attempt to justify these actions.

"Mr. Ellison now appears to acknowledge that he was personally aware of and personally authorized the broad overall strategy of a covert operation against a variety of trade associations.

"This is dramatic evidence that Microsoft's competitors have engaged in a massive and ongoing campaign to unfairly tarnish Microsoft's public image and promote government intervention to benefit themselves.

"Unfortunately, the published reports and Mr. Ellison's attempts to justify his company's behavior only raise many more questions about the nature, scope and duration of Oracle's activities.

"These published reports may only be the tip of the iceberg of their activities.

"Oracle's attacks on trade associations and public policy groups are disingenuous and hypocritical. Obviously, Oracle has funded or supported numerous groups that have attacked Microsoft in recent years, such as ProComp, the Progress & Freedom Foundation, the Software & Information Industry Association, and the Computer & Communications Industry Association. While we do not agree with the views or tactics of these groups, we respect their right to express their views.

"Oracle apparently believes its business goals are more important than the free speech and privacy rights of others."

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For more information, press only:

Vivek Varma, Microsoft, (425)703-6692, vivekv@microsoft.com

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